AEV half-year profit surges 10% at P11.5B

AEV half-year profit surges 10% at P11.5B | Daily Tribune

Aboitiz Equity Ventures Inc., a conglomerate led by the Aboitiz Family, reported a stable profit in the first half of the year, with its power business as a leading growth driver.

In a stock exchange disclosure on Thursday, the company said consolidated net income from January to June clocked in at P11.5 billion, representing a 10 percent increase from P10.5 billion in the same period last year.

In terms of core profit, minus the P83-million non-recurring gain, growth only inched up by a modest 2 percent to P11.4 billion in the first six months from P11.1 billion a year ago.

AEV said power accounted for 65 percent of the total net income contributions from its business units for the first half, while food and beverages accounted for 20 percent.

Net income contributions from financial services, real estate, and infrastructure units were at 18 percent, 3 percent, and -5 percent, respectively.

Aboitiz Power Corp.’s net income contribution to AEV totaled P9.1 billion, 2 percent lower compared to the P9.3 billion recorded during the same period the previous year.

Power unit gains lower

The company experienced a 4 percent decline in its net income, falling from P17.8 billion last year to P17.1 billion due to the depreciation and interest expenses associated with Units 1 and 2 of GNPower Dinginin Ltd. Co.

Meanwhile, Union Bank of the Philippines contributed P2.5 billion to the group’s net income, reflecting a 23 percent decrease compared to the P3.2 billion recorded in the same period the previous year.

UnionBank’s net income was P5.1 billion for the first half, 17 percent lower than the P6.1 billion recorded in the same period of the previous year.

Meanwhile, Aboitiz Land, Inc. and its subsidiaries reported a consolidated net income of P445 million, 14 percent higher than the P389 million recorded in the same period in 2023.

Net income contribution from the Food and Beverage segment, which includes the newly bought Coca-Cola Beverages Philippines, Inc., was P2.8 billion for the first half—more than 15x higher than the P181 million recorded in the same period in 2023.

During the first half of the year, Aboitiz InfraCapital, Inc. experienced a reversal in its income contribution to AEV.

Instead of the P334 million profit recorded in the same period in 2023, the company incurred a loss of P312 million. This shift was primarily attributed to increased interest expenses resulting from additional debt acquired by Aboitiz InfraCapital, Inc. to support its expansion efforts.

As of the end of June, AEV’s consolidated assets exhibited a modest increase, reaching P847.8 billion, representing only a 2 percent growth compared to the year-end 2023 level of P833.9 billion.

Cash and cash equivalents experienced a significant decline, dropping by 35 percent from P112.3 billion at the end of 2023 to P73.0 billion.